What Does Gardner Denver Holdings, Inc.'s (NYSE:GDI) Share Price Indicate?
Gardner Denver Holdings, Inc. (NYSE:GDI), which is in the machinery business, and is based in United States, led the NYSE gainers with a relatively large price hike in the past couple of weeks. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Let’s take a look at Gardner Denver Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Check out our latest analysis for Gardner Denver Holdings
What's the opportunity in Gardner Denver Holdings?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 1.24% above my intrinsic value, which means if you buy Gardner Denver Holdings today, you’d be paying a relatively reasonable price for it. And if you believe the company’s true value is $35.04, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Gardner Denver Holdings’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
What kind of growth will Gardner Denver Holdings generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. Though in the case of Gardner Denver Holdings, it is expected to deliver a relatively unexciting top-line growth of 0.5% in the next few years, which doesn’t help build up its investment thesis. Growth doesn’t appear to be a main reason for a buy decision for the company, at least in the near term.
What this means for you:
Are you a shareholder? It seems like the market has already priced in GDI’s future outlook, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?
Are you a potential investor? If you’ve been keeping an eye on GDI, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Gardner Denver Holdings. You can find everything you need to know about Gardner Denver Holdings in the latest infographic research report. If you are no longer interested in Gardner Denver Holdings, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
